House Values Hit New Peak
The November interest rate rises appear to have done little to dampen price growth, with CoreLogic figures showing home values have hit a record high.
After reaching a peak in April 2022, national home values fell by 7.5% by January 2023. But the latest data shows national home values are now up 8.1% from that trough, which means the market has recouped all the losses of the recent downturn.
CoreLogic research director, Tim Lawless, says while it is great news for those who already own property, it is not good news for those looking to buy.
“Affordability pressures are becoming more pressing amid rising values, high-interest rates and worsening serviceability challenges,” he says.
The downside could also mean that as properties become more unaffordable buyer demand could wane, according to Lawless.
“Higher interest rates, higher housing prices, higher rents and high cost-of-living pressures are likely to weigh on buyer sentiment leading into 2024,” he says.
